Höegh LNG : Agreement to transfer the remaining 49% interest in Höegh Grace to Höegh LNG Partners LP
Hamilton, Bermuda, 16 November 2017 - Höegh LNG Holdings Ltd. ("Höegh LNG") today announced an agreement to transfer the remaining 49% ownership interest in Höegh LNG Colombia Holding Ltd. ("Grace Holding"), the sole owner of the entities that own and operate Höegh Grace, to Höegh LNG Partners LP ("HMLP") for a purchase price of USD 172.5 million, less USD 86.6 million in pro-rata indebtedness related to Höegh Grace expected to be outstanding at the closing date of the transaction. HMLP intends to settle the purchase price with a combination of cash at hand and a drawing under its revolving credit facility granted by Höegh LNG. The purchase price will be subject to certain post-closing adjustments for net working capital.
HMLP purchased the initial 51% ownership interest in Grace Holding in January 2017.
The transaction has been approved by the Board of Directors of Höegh LNG, the Board of Directors of HMLP and HMLP's Conflicts Committee. The transaction is expected to be completed by the beginning of January 2018, subject to customary closing conditions.
Sveinung J.S. Støhle, President and CEO of Höegh LNG, stated "We are delighted to have reached an agreement with HMLP for the third drop-down to the MLP. Funded by a well-received offering of HMLP's perpetual preferred equity earlier this autumn, the transaction demonstrates Höegh LNG's diversified capital markets access. With a leading position in the FSRU market, Höegh LNG remains committed to provide HMLP with further growth opportunities through accretive drop-downs of FSRUs on long-term contracts."
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About Höegh LNG:
Höegh LNG provides floating energy solutions and operates world-wide with a leading position as owner and operator of floating LNG import terminals; floating storage and regasification units (FSRUs), and is one of the most experienced operators of LNG Carriers (LNGCs). Höegh LNG's vision is to be the industry leader of floating LNG solutions and the strategy is to continue to focus its growth plans in the FSRU market, with the objective of securing long-term contracts with strong counterparties at attractive returns. Höegh LNG is a Bermuda based company with established presence in Norway, Singapore, the UK, USA, South Korea, Indonesia, Lithuania, Egypt, Colombia, China and Turkey. The company employs approximately 115 office staff and 500 seafarers.
Sveinung J. S. Støhle, President and Chief Executive Officer, Telephone +47 975 57 402
Steffen Føreid, Chief Financial Officer, Telephone +47 975 57 406
Erik Folkeson, Head of IR, Telephone +47 414 21 769
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act or the Continuing Obligations of Oslo Børs